Mega-Buyouts May Be One Dell Deal Away From a Comeback

The talks over a mega-buyout of Dell Inc. could help drive other private equity firms back to the big-spending days, a private-equity lawyer said Tuesday.

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Are the ‘Barbarians’ arming up again?

Kevin O’Mara, a partner at law firm Jones Day who focuses on PE, said the reported Dell talks are a “classic” private-equity deal.

“You’ve got a company that’s run into some trouble, kind of lost its way a bit,” O’Mara told Deal Journal. “It presents a big opportunity to a PE fund … to fix the company outside of public scrutiny.”

But there hasn’t been a deal this size in more than five years and some in the private-equity industry have heralded the end of the mega-buyout,when multiple firms join a so-called club deal to buy assets worth north of $20 billion.

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Deal Journal is an up-to-the-minute take on the deals and deal makers that shape the landscape of Wall Street, including mergers and acquisitions, capital-raising, private equity and bankruptcy. In short, wherever money changes hands. Deal Journal is updated throughout each trading day with exclusive commentary, analysis, data, news flashes and profiles. The Wall Street Journal’s David Benoit is the lead writer, with contributions from other Journal reporters and editors. Send news items, comments and questions to deals@wsj.com.